Fakoyejo Olalekan
The official market recorded another decline in the value of the naira, as the dollar rate went up by 0.23 per cent at the end of trading on December 21, 2022.
According to trading data obtained from FMDQ Securities, the exchange rate between both currencies closed at N456.33/$1 on Wednesday, rising above the N452.67/$1 reported on Tuesday.
Join our WhatsApp ChannelPrime Business Africa gathered that the naira depreciated in the face of an increase in supply, after $377.48 million was transacted at the Investors and Exporters (I&E) window.
This is a 181.62% increase, considering the value of foreign exchange transacted during the previous session was $134.04 million according to the FMDQ data.
However, in the black market on Thursday, the Bureau De Change window recorded a rise in naira’s value, as the dollar was sold at N743. This is 0.27 per cent below the N745 they both exchanged for on Wednesday.
The official window and the black market have been trading in opposite direction in the wake of the cash withdrawal policy released by the Central Bank of Nigeria (CBN) earlier in December.
Prime Business Africa understands that the cash withdrawal limit has increased the rush to dump naira for dollars, which was triggered by the decision of the central bank to redesign the naira N200, N500 and N1,000 notes in a bid to recover the money in circulation or outside the banking system.
Both the currency redesign and cash withdrawal limit policies have weighed heavily on the naira, pushing persons hoarding naira to dump it in exchange for dollar in the black market in order not to be affected by the deadline of January 31, 2023, when the old naira becomes illegal.
READ ALSO: Updated: CBN Increases Cash Withdrawal Limit For Businesses, Individuals, Warns Banks
The former deputy governor of the central bank, Kingsley Moghalu, Bureau De Change operators, and even the CBN have admitted that the value of the naira will be impacted by the financial regulator’s policy.
The exchange rate between the naira and the dollar at the black market appreciated by 0.27% to trade at N743/$1 on Thursday, 22nd December 2022 from N745/$1 recorded in the previous trading session.
This is according to information from black market traders who spoke to Nairametrics.
Also, the naira strengthened against the US dollar at the P2P cryptocurrency Exchange with a 0.32% appreciation from N744.45/$1 recorded on Wednesday morning to trade at a minimum of N742.1/$1 on Thursday morning.
On the flip side, the exchange at the official importer and exporter window depreciated further on Wednesday to close at N456.33/$1 on Wednesday 21st December 2022 from N452.67/$1 that was recorded in the previous trading session. This represents the lowest level on record.
